Income
Tax Service For Individuals - Nearly everyone can
claim an exemption on their tax return. It usually lowers your taxable income.
In most cases, that reduces the amount of tax you owe for the year. Here are
the top 10 tax facts about exemptions to help you file your tax return.
1. E-file your tax
return. Filing electronically is the easiest
way to file a complete and accurate tax return.
2. Exemptions cut
income. There are two types of
exemptions. The first type is a personal exemption. The second type is an
exemption for a dependent. You can usually deduct $3,950 for each exemption you
claim on your 2014 tax return.
3. Personal
exemptions. You can usually claim an
exemption for yourself. If you’re married and file a joint return, you can
claim one for your spouse, too. If you file a separate return, you can claim an
exemption for your spouse only if your spouse:
- had no gross income,
- is not filing a tax return, and
- was not the dependent of another taxpayer.
4. Exemptions for
dependents. You can usually claim an
exemption for each of your dependents. A dependent is either your child or a
relative who meets a set of tests. You can’t claim your spouse as a dependent.
You must list the Social Security number of each dependent you claim on your
tax return. For more on these rules, see IRS Publication 501, Exemptions,
Standard Deduction, and Filing Information.
5. Report health care
coverage. The health care law requires you to report certain health insurance
information for you and your family. The individual shared responsibility
provision requires you and each member of your family to either:
- Have qualifying health insurance, called minimum essential coverage, or
- Have an exemption from this coverage requirement, or
- Make a shared responsibility payment when you file your 2014 tax return.
6. Some people don’t
qualify. You normally may not claim
married persons as dependents if they file a joint return with their spouse.
There are some exceptions to this rule.
7. Dependents may have
to file. A person who you can claim as
your dependent may have to file their own tax return. This depends on certain
factors, like the amount of their income, whether they are married and if they
owe certain taxes.
8. No exemption on
dependent’s return. If you can claim a
person as a dependent, that person can’t claim a personal exemption on his or
her own tax return. This is true even if you don’t actually claim that person
on your tax return. This rule applies because you can claim that person is your
dependent.
9. Exemption
phase-out. The $3,950 per exemption is
subject to income limits. This rule may reduce or eliminate the amount you can
claim based on the amount of your income.
If you found this Tax
Tip helpful, please share it through your social media platforms. If you would like more details about these or any other
aspect of the law, please do not hesitate to call.
Click this link to view
our YouTube video http://youtu.be/EYJdQtbPZAI
(651)
621-5777, (952) 583-9108, (612) 224-2476, (763) 269-5396
No comments:
Post a Comment